Governance Requirements for Publicly Traded Companies

A publicly-traded company’s board of directors must provide evidence of compliance with Securities and Exchange Commission (SEC ) and stock exchange rules to guarantee board independence and competence. Privately held company boards that do not meet these standards prior to the IPO encounter delays or transition problems due to lack of readiness and evidence of various requirements with dates as of when such standards must be met.

Publicly- traded companies must be able to provide evidence of controlled configuration items where the system of record, matches a production audit in four dimensions corporate governance:

• people
• process
• performance
• purpose